Phone Corporation acquired 70 percent of Smart Corporations common stock on December 31, 20X4, for $98,700. At that date, the fair value of the noncontrolling interest was $42,300. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Phone Smart Item Corporation Corporation Cash $ 67,300 $ 40,000 Accounts Receivable 102,000 62,000 Inventory 142,000 93,000 Land 67,000 43,000 Buildings & Equipment 419,000 253,000 Less: Accumulated Depreciation (162,000 ) (78,000 ) Investment in Smart Corporation 98,700 Total Assets $ 734,000 $ 413,000 Accounts Payable $ 150,500 $ 33,000 Mortgage Payable 319,500 260,000 Common Stock 67,000 39,000 Retained Earnings 197,000 81,000 Total Liabilities & Stockholders Equity $ 734,000 $ 413,000 At the date of the business combination, the book values of Smarts assets and liabilities approximated fair value except for inventory, which had a fair value of $99,000, and buildings and equipment, which had a fair value of $190,000. At December 31, 20X4, Phone reported accounts payable of $14,300 to Smart, which reported an equal amount in its accounts receivable. Required: a. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1-

A- Record the basic consolidation entry.

B- Record the excess value (differential) reclassification entry

C- Record the entry to eliminate the intercompany accounts.

D- Record the optional accumulated depreciation consolidation entry.

2- Prepare a consolidated balance sheet worksheet

3- Prepare a consolidated balance sheet in good form.